HgCapital, the Manager of HgCapital Trust plc, announces an investment in Esendex, a leading provider of mission-critical business messaging services across Europe. This represents a further investment into the Technology Infrastructure cluster. On completion of the transaction, Esendex will be merged with existing Mercury portfolio company Mobyt, which provides similar business messaging services in Italy and France. HgCapital will have a majority share in the combined business with the Company owning c. 20% alongside other HgCapital clients. The terms of this transaction were not disclosed.
HgCapital Trust plc will invest approximately £8.9 million in Esendex (including £5.5 million in co-investment), in addition to the £2.7 million of equity already invested in Mobyt. Other institutional clients of HgCapital will invest alongside the Company through the HgCapital Mercury Fund.
The Company, whose shares are listed on the London Stock Exchange, gives private and institutional investors the opportunity to participate in all HgCapital's investments.
Following completion, approximately 83% of the Mercury Fund will have been invested. In February 2017, the Company committed £80 million to further investments in smaller-cap technology companies, with the Mercury 2 Fund, over the next four to five years.
Based on the pro-forma 31 May 2017 NAV, the Company’s liquid resources available for future deployment, including all announced transactions, are estimated to be £137 million (22% of the pro-forma 31 May 2017 NAV of £621.2 million). In addition, the Company has access to an £80 million standby facility, which is currently undrawn. Following the transaction, the Company will remain committed to invest approximately £474 million in HgCapital deals over the next four to five years.